Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

c. (22 points) Brooke Company uses a job-order costing system and a predetermined overhead rate based on machine hours. At the beginning of the

image text in transcribed

c. (22 points) Brooke Company uses a job-order costing system and a predetermined overhead rate based on machine hours. At the beginning of the year, the company estimated manufacturing overhead for the year would be $750,000 and machine hours used would be 30,000. The following information pertains to March of the current year: Job X Job Y Job Z Totals Beginning balance $18,000 $27,000 $30,000 $75,000 Current period costs added: Direct materials requisitioned (used) $40,000 $45,000 $35,000 $120,000 Direct labor costs $28,000 $40,000 $37,000 $105,000 Current period activity Machine hours 1,500 2,000 1,500 5,000 Assume that Jobs X and Y are completed during the month; and that Job X was sold on account for $150,000. Required: a. Compute the predetermined overhead application rate for the year. 25/per yr b. Determine the total cost (including beginning inventory) assigned to each job; X, Y, and Z. On Paper c. Give the journal entry to record the completion of Jobs X and Y. on Paper d. Give the journal entries to record (1) the sale and (2) the cost of sale of Job X. M Paper e. What is the ending balance of Brooke's work-in-process inventory? On Paper

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M. Datar, George Foster

12th edition

131495380, 978-0131495388

More Books

Students also viewed these Accounting questions

Question

Identify the ways in which disability income insurance is marketed.

Answered: 1 week ago